Crypto companies are in trouble, the EU is trying to bring order to the wild west of crypto, and TikTok’s biggest creator is joining forces with a major crypto exchange. These stories and more this week in crypto.
Three Arrows Capital files for bankruptcy
Crypto investment firm Three Arrows Capital, which managed about $10 billion in assets, has filed for bankruptcy. The plunge in digital asset prices in recent weeks has exposed a liquidity crunch at the company known for its highly leveraged bets. The bankruptcy filing is a move aimed at protecting your American assets.
Coordinated attack on Tether
Tether CTO Paolo Ardoino confirmed rumors that the Tether stablecoin has been the subject of a coordinated attack by hedge funds. Genesis Global Trading also revealed that hedge fund clients have used its services to make hundreds of millions of dollars in short trades in Tether. So far, however, the stablecoin remains closely pegged to the dollar.
CoinFlex: Bitcoin.com founder owes $47 million
The Coinflex exchange halted customer withdrawals due to liquidity issues stemming from a large account with a $47 million negative balance that they claim belongs to high-profile bitcoin evangelist Roger Ver. Bitcoin.com founder Ver has denied owing the exchange anything and claimed in a tweet that CoinFlex does indeed owe him money.
Another troubled crypto lender
As the contagion continues to spread through the crypto market, Voyager Digital has become the latest crypto lender to suspend withdrawals, trading and deposits. The move comes days after the company issued a default notice to hedge fund Three Arrows Capital for default on the loan.
EU attempts to regulate digital assets
European lawmakers have reached an agreement on crypto regulation. Known as Markets in Crypto-Assets, or MiCA, it is the European Union’s first attempt to create a comprehensive regulatory framework for digital assets in the region. According to the EU, the aim is to “bring order to the wild west of crypto assets”.
Grayscale Sues SEC
Grayscale, which runs the world’s largest bitcoin fund, said it would sue the US Securities and Exchange Commission after regulators rejected its bid to turn the investment vehicle into an ETF. The SEC rejected Grayscale’s application for a spot bitcoin exchange-traded fund, citing that the investment manager failed to respond to questions about concerns about market manipulation.
Bitcoin Bulls Continue to Buy the Dip
After losing $60 million worth of his Bitcoin purchases, El Salvador’s president has bought more, spending another $1 million to pile an additional 80 BTC into El Salvador’s existing storage. Also, amid rumors of its impending insolvency, Michael Saylor’s MicroStrategy has also made another batch of defiant bitcoin purchases; revealing that he has bought 480 bitcoins worth $10 million since the cryptocurrency market’s intense sell-off began in May.
HTC’s new Metaverse smartphone
Smartphone maker HTC has launched a new phone that supports its metaverse platform and incorporates crypto and NFT functionality. The Desire 22 Pro will have the Viverse metaverse app and a crypto wallet built into the phone. Users can create virtual avatars and manage crypto assets, including NFTs.
Khaby Lame, the world’s most followed TikToker, has joined Binance as a global ambassador. Khaby Lame will use his signature style to address some of the misperceptions surrounding Web3 throughout the collaboration. It will also collaborate on exclusive NFT collections with Binance, further enhancing the experience of its fans in a push to increase awareness and adoption of Web3.
That’s what happened this week in crypto, see you next week.
